Finance minister Pranab Mukherjee proposed to raise by Rs 10,000 the exemption limit for women on Income Tax.
For all others, the limit was increased by Rs 10,000 from Rs 1,50,000 to Rs 1,60,000.
Mukherjee presented the Union Budget for 2009-2010 at the Lok sabha on Monday.
Type I: In case you are using digital signature, no further action is required.
Type II: In case you are filing the return without digital signature, ITR-V form is to be filed with the department. This is a single page receipt-cum-verification form.
Type III: You can also file your return through an e-return intermediary who would do e-filing and also assist you file the ITR -V Form.
But you need to pay their fees (currently in the range of Rs 150 to Rs 1,000 for individual tax payers) for taking their help.
Process / Steps :
a) Select appropriate type of return form
b) Fill your return offline and generate an XML file
c) Register and create a user ID/password
d) Login and click on relevant form on left panel and select ‘Submit Return’.
e) Browse to select XML file and click on ‘Upload’ button
f) On successful upload, acknowledgement details would be displayed. Click on ‘Print’ to generate printout of acknowledgement/ITR-V Form.
a) In case the return is digitally signed, on generation of ‘Acknowledgement’, the return filing process gets completed. Assessee may take a printout of the acknowledgement for his record.
b) In case the return is not digitally signed, on successful uploading of e-return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement-cum-verification form. The tax payer has to fill up the verification part and verify the same. A duly verified ITR-V form should be submitted with the local Income Tax Office within 15 days of filing electronically. This completes the return filing process for non-digitally signed returns.
(Via ET, With inputs from National Informatics Centre, Government of India)
NEW DELHI: While filing tax return this year, you need not attach Form-16 with the form. In a statement on Friday, Central Board of Direct Taxes (CBDT) said that annexures and certificates like Form-16, relating to tax deducted at source are not required for income tax returns filing.
“No annexures, TDS/TCS certificates are required to be annexed to the returns of income.” an official statement said. A senior CBDT official said that all informations regarding TDS are recorded in the PAN (permanent account number) data of a tax payer.
He said the department collects data on TDS from various sources and keep it in the PAN data banks of tax payers. Therefore, he said, the tax payers should just provide the TDS informations in the specified column in the return form. If the figure provided in the return is not matched with the data collected in PAN, then the department would ask the tax payer to furnish the Form-16.
The credit for TDS and tax collected at source (TCS) will be allowed on the basis of details furnished in the relevant schedules of the return forms. Assessing officer will not disallow claim in this regard (return against excess tax paid) only on the ground that the TDS/TCS certificates have not been filed along with the return of income, the statement said.
Also, to enable tax-payers to file returns in the electronic mode, the new return forms have been made annexure-less, except ITR-7, which is the returns for trusts. The electronic return filed with electronic signature will be treated at par with a physical sign.
In case of tax return filed without electronic signature, the department said, the tax payers will get an acknowledgement, which will have return receipt number. A tax official said the tax payer should send the acknowledgement to the department. He said only after receiving the acknowledgement form the tax payer, the assessing officer can assess return filed in the electronic form. The department also said a tax payer can make electronic payment of taxes from the account of any other person. Source: TOI
Have you bought or sold a house or a plot for more than Rs 30 lakh? Then expect a knock from tax hounds. Real estate sector is high on the radar of the income-tax department, which is going to keep a close watch on buyers or sellers of property.
Realty deals whose value is more than eight times the gross income of the buyer could come under the scanner of the I-T department, going by the latest scrutiny norms circulated to officials. So, if your gross income is Rs 10 lakh per annum and you have bought a house for more than Rs 80 lakh, you could get a call from the department.
Gross income, for this purpose, shall be total income plus exempted income minus the total tax paid. This norm is being adopted to ensure that there is no evasion and people who enter into such transactions pay taxes honestly.
Cash deposit of Rs 10 lakh in your savings account could also bring you on the scrutiny radar. Individual assesses now have to report transactions which get captured in Annual Information Return (AIRs). Sale or purchase of house above Rs 30 lakh is reported, under AIR, by registrars to the department.
Scrutiny on these counts would be generated though Computer Assisted Scrutiny System (CASS) and not through manual intervention.
According to the criterion that were discussed at the recent annual conference of the chief commissioners and directors general of income-tax, capital gains of more than Rs 25 lakh could also attract scrutiny by the department in the current financial year.
Similarly, loss from house property of more than Rs 2.5 lakh would also invite the I-T department’s scanner, sources told ET. The real estate sector, which is known to attract large quantum of black money, continues to draw the attention of tax department.
Real estate agents and builders having a turnover of more than Rs 5 crore could attract scrutiny. Professionals like doctors, architects whose gross receipts exceed Rs 40 lakh and those who report profit of less than 30% of the gross receipt, can also face scrutiny.
The Income Tax Department has put on its website the list of income tax refunds of all salary tax payers which could not be sent to the concerned persons for want of correct address.
Salary taxpayers who have not received refunds for assessment years 2003\04 to 2006\07 can click on the link below and query using the PAN number and assessment year whether any refund due to them has been
returned undelivered from the menu `undelivered salary refund management system’. If any refund has been returned undelivered due to change in address, then the taxpayer can enter the present address and the refund will be sent to the taxpayer at the new address.
The link to the website is as under:
http://www.incometaxindia.gov.in/CCIT/refundsearch.asp
Simplification of tax administration has been high on the government’s agenda. Various measures have been taken by the government over the past few years.
These include introduction of PAN as the sole identification number for income tax transactions, electronic payment of taxes, electronic filing of income tax returns, and so on. The tax department plans to concentrate on more efficient and effective work.
In the current year, the tax-GDP ratio is at an all-time high of 12.5 percent. Direct tax collections touched Rs 3 lakh crores for the first time. The Department has been disposing off about 2.60 crore tax assessments every year. The cost of collections is already going down and stands at 0.74 percent of the total collections.
Chidambaram announced major – and arguably populist - changes in the Income Tax slab. He said the threshold of exemption for all Income Tax assesses will be raised from Rs 1,10,000 to Rs 1,50,000, eliciting applause from the Parliamentarians. Personal income tax exemption slab for women will be at Rs 1.8 lakh
* Every income tax assessees to get relief of minimum of Rs 4,000.
* No change in rate of surcharge.
* New tax slabs will be: 10 per cent for 150,000 to 300,000, 20 per cent for 300,000 to * 500,000 and 30 per cent above 500,000.
* No change in corporate income tax.
CBDT has enhanced the scope of filling Etds/Etcs return by amending the rule 31A(applicable on etds) and 31AA(applicable on etcs) vide Income-tax (Ninth Amendment) Rules, 2007 NOTIFICATION No. 238/2007, dated 30-8-2007.Now following person are liable to file etds/etcs return.
1. All Government department/office or
2. All companies.or
3. All person required to get his accounts audited under section 44AB in the immediately preceding financial year; or
4 The number of deductees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty
The ITD has issued the ITR 1 to 4 on the net to be filled and got printed. But why there is so much delay in other forms? whether the ITD waiting the last few days in due dates i.e near October? Is it not an extra burden on the assessees and their consultants to fill the forms by hand only?
The Income Tax Department is gearing up to prepare a 360-degree tax profiling of individual tax payers in the country to keep a tab on tax
evasion and money laundering.
“Finance inister has given a go-ahead for integrated 360-degree mapping of individual tax payers by utilising data collected from various sources
like annual information returns (AIRs) from banks, credit cards, mutual funds, stock market and property registrars,” a senior Finance Ministry
official said.
Only esterday, Finance Minister P Chidambaram had said that in the meeting of chief income tax commissioners, decision has been taken for
integrated tax mapping. He, however, declined to give details about the project.
Sources said fter a successful pilot project on integrated tax profiling in Delhi, the I-T department also has plans to prepare a huge data bank that
would have all sorts of information on potential tax evading individuals and corporate houses.
The overnment has so far gathered information about Rs 60,00,000 crore investment by tax payers through AIRs. Under the tax mapping, the
department plans to explore cases involving large scale tax evasion.
The ources said the Financial Intelligence Unit (FIU) under the ministry will also provide information about potential tax evaders, as it
collects and analyses information about financial transactions through banks and other financial institutions.
NOTIFICATION NO. 208/2007
In exercise of the powers conferred by section 295, read with proviso to sub-section (3) of section 40A of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely : -
1. (1) These rules may be called the Income-tax (8th Amendment) Rules, 2007.
(2) They shall come into force with effect from the assessment year 2008-09.
2. In the Income-tax Rules, 1962, for rule 6DD, the following rule shall be substituted, namely:
‘Cases and circumstances in which payment in a sum exceeding twenty thousand rupees may be made otherwise than by an account payee cheque drawn on a bank or account payee bank draft.
6DD. No disallowance under clause (a) of sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under clause (b) of sub-section (3) of section 40A where any payment in a sum exceeding twenty thousand rupees is made otherwise than by an account payee cheque drawn on a bank or account payee bank draft in the cases and circumstances specified hereunder, namely:
(a) where the payment is made to
(i) the Reserve Bank of India or any banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(ii) the State Bank of India or any subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(iii) any co-operative bank or land mortgage bank;
(iv) any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949 (10 of 1949);
(v) the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);
(b) where the payment is made to the Government and, under the rules framed by it, such payment is required to be made in legal tender;
(c) where the payment is made by
(i) any letter of credit arrangements through a bank;
(ii) a mail or telegraphic transfer through a bank;
(iii) a book adjustment from any account in a bank to any other account in that or any other bank;
(iv) a bill of exchange made payable only to a bank;
(v) the use of electronic clearing system through a bank account;
(vi) a credit card;
(vii) a debit card.
Explanation.- For the purposes of this clause and clause (g), the term “bank” means any bank, banking company or society referred to in sub-clauses (i) to (iv) of clause (a) and includes any bank [not being a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)], whether incorporated or not, which is established outside India;
(d) where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee;
(e) where the payment is made for the purchase of
(i) agricultural or forest produce; or
(ii) the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; or
(iii) fish or fish products; or
(iv) the products of horticulture or apiculture,
to the cultivator, grower or producer of such articles, produce or products;
(f) where the payment is made for the purchase of the products manufactured or processed without the aid of power in a cottage industry, to the producer of such products;
(g) where the payment is made in a village or town, which on the date of such payment is not served by any bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town;
(h) where any payment is made to an employee of the assessee or the heir of any such employee, on or in connection with the retirement, retrenchment, resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed fifty thousand rupees;
(i) where the payment is made by an assessee by way of salary to his employee after deducting the income-tax from salary in accordance with the provisions of section 192 of the Act, and when such employee -
(i) is temporarily posted for a continuous period of fifteen days or more in a place other than his normal place of duty or on a ship; and
(ii) does not maintain any account in any bank at such place or ship;
(j) where the payment was required to be made on a day on which the banks were closed either on account of holiday or strike;
(k) where the payment is made by any person to his agent who is required to make payment in cash for goods or services on behalf of such person;
(l) where the payment is made by an authorised dealer or a money changer against purchase of foreign currency or travellers cheques in the normal course of his business.
Explanation.- For the purposes of this clause, the expressions “authorised dealer” or “money changer” means a person authorised as an authorised dealer or a money changer to deal in foreign currency or foreign exchange under any law for the time being in force.’.
[F. No. 142/4/2007-TPL]
Paying taxes has never been simpler with the authorities introducing the mechanism of online payment. The use of electronic means to deliver services is not only an efficient and speedy process, but it also facilitates a transparent process for disseminating information and delivering it to the taxpayers of the nation.
Online payment of taxes helps you save time, is convenient and is paperless. You could be in office or at home ? the facility to pay taxes is just a click away. To use of this facility, all you need is an account with a bank that offers net banking and e-tax payment facility. SBI, HDFC Bank, IDBI Bank, UTI Bank and Union Bank of India are some banks that provide the e-tax payment facility.
The procedure for payment of taxes online is simple and the user-friendly instructions make it even more attractive. To start with, you need to log on to NSDL-TIN website (www.tin-nsdl.com) and click on the ?e-Tax-online payment? option. You will then be directed to a list of banks that provide the e-tax payment facility. Click on the option for your bank and choose the applicable tax challan.
If it is a tax deducted at source payment, challan no. 281 shall apply; else challan nos. 280, 282 or 283 shall be applicable. Challan no. 280 is used for payment of advance tax and self-assessment tax. Challan no. 282 is used for payment of miscellaneous taxes like gift tax, wealth tax, estate tax, expenditure tax etc. Challan no. 283 is used for payment of fringe benefits tax or banking cash transaction tax.
On opting for the challan type applicable, particulars such as the permanent account number (PAN) or tax deduction account number (TAN) as may be applicable, name and address of the taxpayer, relevant assessment year, type of payment and name of the bank will be displayed.
These particulars will need to be filled in carefully as an incorrect PAN/TAN (if it does match the records of the income-tax department) will not allow further processing of the payment. The mandatory fields are highlighted and to ensure smooth processing, these fields need to be populated. You will then reach the net-banking site provided by your bank where you hold your account and with the use of the allocated customer ID and password, the payment will be processed.
Once the process is complete and the bank processes the online transaction, you will be issued an acknowledgment indicating the challan identification number (CIN). After a week of making the payment, the status of the payment may be verified at the NSDL-TIN website under section ?Challan Status Inquiry?.
You can also verify the payment of taxes through an online bank statement. Apart from being relieved of the hassles of visiting the bank for paying taxes and the additional paper work, an added advantage is that online payment does not require attaching the acknowledged counterfoil with your return.
Quoting the challan identification number is sufficient proof for the tax authorities. Imagine, not having to worry about the challan copies and the related paperwork. As for security concerns, the authorities assure the taxpayers that the transmission through the NSDL-TIN website is encrypted and is with the secure socket layer authentication.
Source : www.cainindia.org,